Sir, Last the Government of India implement service tax on bar and restaurant service. But most of the Bars are not having service tax licence. Now, the Anti Evasion of Central Excise, Customs and Service tax issued notices to bars and insist to pay the tax on the total amount shown in the income tax return after deduction abatement 70%. I read some of the articles given by the experts says while calculating taxable service, deduct VAT and also MRP sales. But this contention is not accepted by the department. As per my knowledge, abatement is not compulsory for arriving taxable service. Now, my question is

1. How to compute taxable service?

2. Is there is only one way to pay the tax i.e., after availing the abatement clause?

3. Or is there any other way ( as per Article 366, Clause 29-A of Indian Constitution)

Please clarify the issue.